In the Long Run,perfectly Competitive Firms Will Exit the Market

question 184

Multiple Choice

In the long run,perfectly competitive firms will exit the market if the price is

• A) higher than average variable cost.
• B) equal to average total cost.
• C) less than average total cost.
• D) equal to average fixed cost.
• E) equal to marginal revenue.

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Definitions:

Budgeted Balance Sheet

A budgeted balance sheet forecasts a company's financial position at a future date, including assets, liabilities, and shareholders' equity, based on projected financial activities.

Budgeted Income Statement

A projected financial statement that estimates a company's expected revenues, expenses, and net income for a future period based on a budget.

Production Facility Capacity

The maximum amount of goods a manufacturing facility can produce over a specific period under normal working conditions.

Finished Goods Units

The quantity of completed products available for sale or distribution at the end of a production process.